[dalby]

i disagree with one thing

as i said, i use naked puts in an INVESTMENT account, not a trading account

in this respect, they are not a directional bet at all

they are an investment strategy based on perceived value

if i have a stock i want to buy if it goes down to 20 and it is currently at 22, i can sell a naked put.

if the stock never reaches my target entry price, then i collect some premium

if it reaches my target price (a bit below it), then if i get exercised, i have to buy the stock at my strike price

which is where i perceived value in it

this is one way to use naked puts that is not a drectional bet